Registration of Mutual Fund with SEBI

Get Started
  • Formation of Mutual fund company
  • Review of Documents with the directors of the company
  • Business plan for 5 years
  • Mutual fund product plan & Risk assessment
  • Advisory on Application before the SEBI Board
Request a call back
Secured by Norton

What is Registration of Mutual Fund with SEBI?

  • A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders.
  • Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.
  • An applicant proposing to sponsor a mutual fund (MF) in India must submit an application in Form A [first schedule of the SEBI (Mutual Funds) Regulations, 1996 (hereinafter, referred to as the Regulations)] along with a non-refundable fee of INR 5 lakh.
  • The application is examined and once the sponsor satisfies the eligibility criteria, it is required to complete the remaining formalities for setting up a MF. These include inter alia, executing the trust deed and investment management agreement, setting up a trustee company/board of trustees comprising two-thirds independent trustees, incorporating the asset management company (AMC), contributing to at least 40% of the net worth of the AMC and appointing a custodian. Upon satisfying these conditions, the registration certificate is issued subject to the payment of registration fees of INR 25 lakh.

Procedure for registering a mutual fund with SEBI

An application for registration of a mutual fund shall be made to the Board (SEBI) in Form Aby the sponsor along with the non-refundable fee of INR 5 lakh.

Eligibility criteria

The applicant has to fulfil the following criteria for grant of a certificate of registration:

The sponsor should have a sound track record and general reputation of fairness andintegrity in all his business transactions.

Explanation: For the purposes of this clause "sound track record" shall mean thesponsor should

  • Be carrying on business in financial services for a period of not less than 5 years; and
  • The net worth is positive in all the immediately preceding 5 years; and
  • The net worth in the immediately preceding year is more than the capitalcontribution of the sponsor in the asset management company; and
  • The sponsor has profits after providing for depreciation, interest and tax in 3 out of the immediately preceding 5 years, including the 5 year.
  • The applicant is a fit and proper person.

In the case of an existing mutual fund, such fund is in the form of a trust and thetrust deed has been approved by the SEBI;

The sponsor has contributed or contributes at least 40% to the net worth of the asset management company,

Provided that any person who holds 40% or more of the net worth of an assetmanagement company shall be deemed to be a sponsor and will be required to fulfil the eligibility criteria specified in these regulations;

  • The sponsor or any of its directors or the principle officer to be employed by the mutual fund should not have been guilty of fraud or has not been convicted of an offence involving moral turpitude or has not been found guilty of any economic offence;
  • Appointment of trustees to act as trustees for the mutual fund in accordance with the provisions of the regulations;
  • Appointment of Asset Management Company to manage the mutual fund and operate the scheme of such funds in accordance with the provisions of these regulations;
  • Appointment of custodian in order to keep custody of the securities or gold and gold related instrument or other assets of the mutual fund held in terms of these regulations, and provide such other custodial services as may be authorised by the trustees

SEBI may register the mutual fund on receipt of all the information and accordingly decide to grant acertificate of registration in Form B subject to the payment of registration fees of INR 25 lakh.

A mutual fund shall pay before the 15th April each year an annual fee as specified under for every financial year from the year following the year of registration

Average Assets under Management (AAUM) as on 31 March Annual Fee
AAUM up to INR 10,000 crore 0.0015% of the AAUM
Part of AAUM above INR 10, 000 crore 0.0010% of the portion of AAUM in excess of INR 10,000 crore

Subject to a minimum of INR 2, 50,000 and a Maximum of INR 1, 00, 00,000.

Where the sponsor does not satisfy the eligibility criteria SEBI may reject the application and inform the applicant of the same.

Share With
Why Enterslice?
Asia Winner
Top 100 Most Innovative Companies in Asia - Red Herring
Top 25 Consultants
Forbes 30 Under 30 in American business and industry figures Lists.
100%
Success Rate. Your Order Comes with Money Back Guarantee
100+
Services delivered by 100+ Qualified CA and CS
Latest news
Enterslice begins operations in Hong Kong
Enterslice begins operations in Hong Kong

Hong Kong [China], May 04 (NewsVoir): Enterslice has earned a remarkable reputation for helping..

Read more
Peer to peer lending now needs NBFC registration - Interview of Narend..
Peer to peer lending now needs NBFC registration - Interview of Narend..

Apart from helping these startups raise organized funding, this announcement also means that the..

Read more
Prodigee Finance gets license from Reserve Bank of India
Prodigee Finance gets license from Reserve Bank of India

It's quite understandable that the rules and regulations of the Reserve Bank of India make it a c..

Read more
As seen in
Testimonials
5.0

" Enterslice use technology better than others. That saves time and money; Team enterslice is more efficient than traditional competitors, and that helps to pass on the cost advantage to its clients. The company is building a high-level transparency in legal services by optimum use of technology and process automation in consulting. I highly recommend this company. "

Nilanjan Bandyopadhyay
Nilanjan Bandyopadhyay
5.0

" Excellent advisory role by Enterslice Team. They are a trusted partners to us. Narendra and his team helped us with our pre NBFC applications and Post NBFC advisory services. "

Amit Goel
Amit Goel
5.0

" Amazing services provided by your organization. They have completed our NBFC registration order within stipulated time period of 90 days. They provide constant guidance and support in the process. Their support in building fintech software is amazing. "

Manisha Mantri
Manisha Mantri
Trusted by
Finstar Financial
Fashiontv
Bioworld
Acme Solar
Opera Software
BANK OF AMERICA
Razorpay